If you want to improve your credit rating shortly before taking out a planned loan, you should first get a self-report. Check the data contained therein for correctness. When your data are saved, errors can arise which worsen your credit rating. The data saved by credit rating agencies form an important basis for assessing your credit rating. In principle, German banks do not grant any loan without first checking the applicant's credit rating. In addition to the fundamental decision on whether the loan is granted, the level of the interest charged can also depend on your credit rating.
Just like the rest of us, credit rating agencies are not perfect. Therefore, a credit report might contain obsolete or incorrect data. Sometimes, a loan which has long been repaid has not been deleted. In addition to banks, credit rating agencies also receive data from contract partners, such as mail-order companies, online shops, telecommunications providers, collection companies and other institutions. A default summons issued unjustly which is still contained in your credit report (even though your objection was successful) significantly lowers your credit rating. You can improve your credit rating by asking the credit rating agencies to delete incorrect data regarding you.
If you obtain quotes from several banks before taking out a loan, you should make sure that you submit the loan inquiry to the banks as inquiries regarding lending conditions. Banks and other lenders report even non-binding loan inquiries to credit rating agencies. You can improve your credit rating by pointing out that you are asking about lending conditions in your loan inquiries.
Other opportunities to improve your credit rating arise while applying for a loan. Banks assess your credit rating on the basis income, existing assets and payment obligations. Therefore, you should consider all your income when specifying your income. Moreover, an income tax refund can also increase your annual income. Interest income from capital investments or statutory care payments which you receive if you care for relatives are also classified as income. Moreover, you can also improve your credit rating if you include a second borrower who has his/her own income. If spouses take out a loan, their credit rating improves if both partners have their own income.
Many of the credit rating criteria cannot be influenced shortly before you take out a loan. Therefore, a long-term improvement of your credit rating is sensible. This worsens e.g. as a result of a multitude of loans, a large number of current accounts and credit cards or negative entries because of unpaid bills. You should also avoid entries at credit rating agencies regarding rejected mobile phone agreements, irregular loan repayments or collections procedures. Long-term employment has a positive effect on your credit rating.